'Connected' Headline of the Day
UPDATE Arity promises more transparent UBI data and driving report access
[Editor's note: We see this as a positive and much needed development when it comes to driver data and transparency. Aside from individuals choosing to participate in UBI programs, drivers have often been in the dark when it comes to tracking and sharing such information and even more so knowing what a driver score means and how to manage it. "Informed consent" is primary to higher adoption. This is all reminiscent of the early days of credit scoring addressed by the likes of Credit Karma]
Arity, a mobility data and analytics company and Allstate subsidiary, says it has found a way to offer more transparent usage-based insurance (UBI) data and driving reports to consumers.
Right now, users have to request a copy of their driving reports from Arity after signing up for a UBI program or agreeing to share their driving data with one of Arity’s mobile app partners.
“We recognize that this process can be unclear or difficult to navigate, and that not all consumers are aware they even have a driving score,” Arity told Repairer Driven News. “To help bridge this gap, our new D2C [direct to consumer] tool will make it easier for individuals to check whether a driving report exists for them, and view it directly, even before enrolling in a UBI program or agreeing to share it when shopping for insurance. This new tool is designed to bring greater transparency, accessibility, and control to consumers interested in understanding how their driving behavior might impact insurance pricing.”
The tool is slated to launch later this year, according to Arity.
According to Arity’s recently published guide on the new process, driving scores help consumers better understand their driving behavior data and, for insurers, present “an opportunity to unlock the full potential of telematics programs and grow consumer participation.”
“Demystifying driving behavior data and delivering it in an accessible, user-friendly way strengthens consumer trust and generates richer data insights — fueling sharper risk assessments, more accurate pricing strategies, and improved customer retention,” Arity states in the report.
News
Trump says FEMA phaseout to begin after hurricane season
President Donald Trump said his team will move forward with winding down much of the Federal Emergency Management Agency, but not until after a hurricane season that some projections show could be particularly deadly.
“We’re going to do it much differently,” Trump said Tuesday at the White House, adding that he would like to see FEMA largely eliminated “after the hurricane season.”
Homeland Security Secretary Kristi Noem said the administration would create a council “over the next couple of months” to envision the future of the agency under her department.
“It will empower governors to go out and respond to emergency situations,” Noem said, standing beside Trump.
The move would “make sure that the taxpayers are only fulfilling the need to which is appropriate, and that people are responsible to respond to their own people closest to home,” Noem added.
Any such change would represent a dramatic overhaul to federal disaster assistance, which currently includes both grants to state governments and direct payments to disaster survivors. FEMA also deploys staff and infrastructure for immediate and longer-term, on-the-ground response.
“If a certain state, as an example, gets hit by a hurricane or tonight, that’s what the governor — you know, the governor should be able to handle it,” Trump said. “And frankly, if they can’t handle it the aftermath, then maybe they shouldn’t be governor.”
During the 2024 presidential election, Trump criticized FEMA and the Biden administration’s response to Hurricanes Helene and Milton. The Republican repeated misinformation online and in campaign rallies about what type of federal assistance those affected by storms were eligible to receive.
U.S. commercial insurance rates continue downward trend,
While U.S. commercial insurance rates demonstrated an increase of 5.3% in the first quarter, the rate continued a downward trajectory compared with the prior two quarters (increases of 5.8% and 5.6%), according to the latest findings from WTW's Commercial Lines Insurance Pricing Survey (CLIPS).
The survey compares premiums for policies underwritten during the first quarter of 2025 to those for the same coverage lines in the respective quarter of 2024, demonstrating a year-over-year comparison. Carriers reported an aggregate price increase of 5.3% in the first quarter, down from 6.3% recorded in the first quarter of 2024.
Some coverage lines stood out with respect to price change rates in the quarter. Notably, Commercial Auto maintained a double digit increase but lower than prior quarter, while Commercial Property continued a strong downward pricing trend, with just a slight increase for the first quarter, compared to double digit increase a year prior. Additionally, Professional Liability rates displayed a higher increase this quarter but is still relatively low compared to most of the other lines.
Yi Jing, Senior Director, Insurance Consulting and Technology (ICT) at WTW, commented, "In the first quarter, we witnessed some interesting trends. Overall, the continued reduction in rate increases is a positive sign for buyers. However, consistent double-digit rate jumps for areas like Commercial Auto signify continued pricing difficulty in the market. The only other coverage area maintaining double digit rate increases is Excess / Umbrella Liability."
Like Erie Insurance, Philadelphia insurer faces its own network outage
Erie-based Erie Insurance continued to work June 11 to restore computer systems after reporting a network outage over the weekend.
But Erie Insurance isn't the only Pennsylvania Insurance company working to restore its computer systems.
Philadelphia Insurance Companies, which provides property/casualty and professional liability insurance, is reporting problems of its own.
The company's website, as of mid-morning on June 11, contained only the following message:
"We are currently experiencing a network outage impacting PHLY systems. This outage affects our phone and email systems, as well as customer access to online applications. We are working to resolve this issue as soon as possible and apologize for any inconvenience."
The company, which has about 2,000 employees, is smaller than Erie Insurance, which has about 6,700 employees in 12 states and Washington, D.C.
Kelley Blue Book, Experian Team Up to Bring Buyers Better Vehicle History Reports
Unmatched Trust and Transparency from Detailed Reports to Boost Buyer Confidence and Drive More Conversions
As the market heats up, along with the competition, it has never been more important to make smart car buying choices based on trusted research. As part of its commitment to drive stronger results for our clients, Kelley Blue Book and Autotrader, Cox Automotive brands, today announced they are expanding their strategic relationship with Experian, a global data and technology company, to co-brand its AutoCheck® vehicle history reports on KBB.com and Autotrader.com vehicle listings. Experian's AutoCheck vehicle history reports offered by Kelley Blue Book combine the power of the storied and trusted Kelley Blue Book brand with the detailed insights Experian already delivers to car buyers and sellers for more efficient decision-making.
Experian's AutoCheck vehicle history reports will be available on all eligible listings on both Kelley Blue Book and Autotrader, allowing dealerships to provide potential buyers with detailed vehicle history information and inherent trust in their product. Featured on the vehicle history reports, the proprietary AutoCheck Score offers a quick, clear snapshot of a vehicle's predicted reliability, helping buyers and sellers feel confident every step of the way.
Volvo Launches New Smart Seatbelt to Personalize Safety
Volvo's multi-adaptive safety belt revolutionizes occupant protection, using real-time data to tailor safety in various driving conditions and crash scenarios.
Volvo Cars has introduced a major upgrade to one of its most iconic safety features—the seatbelt. The company’s new multi-adaptive safety belt, a world-first innovation, is designed to offer smarter, more personalized protection in real-world traffic conditions.
New multi-adaptive safety belt - exploded view. New multi-adaptive safety belt - exploded view. Image Credit: Volvo Cars Set to debut in the fully electric Volvo EX60 in 2026, this next-generation seatbelt uses real-time data from the car’s advanced sensor suite to adjust to both driving conditions and the individual characteristics of each occupant.
Unlike conventional seatbelts, the new system gathers input from both interior and exterior sensors to tailor protection based on factors like a person’s height, weight, body shape, and seating position. For instance, in a high-impact collision, a larger occupant might receive a higher belt load setting to reduce the risk of head injury. In a milder crash, a smaller person would receive a lower load to help avoid rib fractures.
This adaptive performance is made possible by expanding the number of load-limiting profiles from three to eleven, giving the belt far greater flexibility in managing crash forces. And because it’s connected to Volvo’s over-the-air software platform, the system can continue to evolve, improving with new insights and data.
P&C Specialist - Insurers Junk Up to 20% of Storm-Battered Cars
Hailstorms are leaving a bigger dent in auto insurers' bottom lines, with nearly one in five hail-damaged vehicles now written off as total losses, a clear sign of how costly and complex vehicle repairs have become.
Commentary/Opinion
Auto Insurers Have Raised Prices For Years, But 2025 Could Be A Buyer's Market
After years of price hikes, car insurers will likely shift their priorities from raising prices to satisfying and retaining their customers.
Car insurance prices have almost doubled over the past five years, according to the latest CPI data, as COVID-19-related supply chain interruptions made car repairs more expensive and natural disasters increased damages.
Last year was one of the costliest years, with claims surging 113% higher than in 2023, according to a report from Verisk, a global data analytics and technology provider, and the American Property Casualty Insurance Association.
Yet, the report found insurance companies were still able to make a profit for the first time in four years in 2024 after consistently raising their prices. However, if insurers want to keep their customers, they will need to shift away from rising rates and exiting unprofitable markets to focus on better customer care, experts at J.D. Power, an American data analytics company, wrote in a recent report. 4
The majority of American drivers say insurance prices are unaffordable, and are cutting down on their coverage. At the same time, about 38% of customers are unsatisfied with their insurer, according to a survey by J.D. Power. That dissatisfaction makes customers much more likely to shop around for a better deal.
“We’ve been hearing from more carriers, particularly in states like Florida and Texas, that they’re making product adjustments to improve their competitive position," Josh Damico, vice president of Insurance Operations at Jerry, a car insurance comparison app, said in an email. "These moves aren’t broad enough to drive insurance deflation, but they do suggest a shift toward more stable pricing and slower increases moving forward. For drivers, this could be a sign of progress.”
Research
THE RISK RIGHT NOW: | Market Shifts Shaping U.S. Auto Insurance - 2025 LexisNexis® U.S. Auto Insurance Trends Report
[Editor's note: A must read Auto Insurance report. Our attention is drawn to several highlights demonstrating insurance market opportunities. One in particular - the evolving Protection Gap. Per LexisNexis; "our research shows that approximately 40% of vehicles with full coverage (liability and physical damage) opted to purchase rental reimbursement coverage"]
The Risk Right Now: Discover the Market Shifts Shaping the U.S. Auto Insurance Industry.Overview
Improved loss ratios, strong premium growth and lower retention rates characterized the U.S. auto insurance industry in 2024. Our internal analysis shows that while a number of insurers returned to profitability as the market softened, record levels of policy shopping and switching, attorney representation, claims severity and rising driving violations contributed to a dynamic environment.
To help insurers keep up with this fast-shifting landscape, LexisNexis® Risk Solutions identified five key auto insurance trends for 2025: SEE REPORT
AI in Insurance
InsurTech Insights 2025: The Rise of Agentic AI and Task-Specific Tech
When the 2025 InsurTech Insights conference convened in New York City last week, the big question was: Can a single year bring a noticeable difference in InsurTech? The answer, it turns out, is yes.
The dominant theme—unsurprisingly—was artificial intelligence (AI). But unlike in years past, the conversation was less about hype and more about practical application.
In the session “Targeting Insurance Distribution with Advanced Technology/Finding the Right Risk" Ken Gregg, CEO of Orion180, said “ease of doing business is really about the path of least resistance, and in that regard, technology is a multiplier of human capital. It should be viewed as an asset, not an expense."
“Don't start with the tech," added Nick Carter, senior sales director at expert.ai. “Start with the problem. Then bring together the right stakeholders to scope the use case before applying technology."
The message is clear: insurers and agents are no longer experimenting. They are implementing.
What truly marks a turning point is the emergence of a new concept: agentic AI. In the session “Beyond the Buzz: What Agentic AI Really Means for Insurance," John Keddy, vice president of Insurance AI Strategy & Solutions, defined agentic AI as “a conductor orchestrating across systems, people, existing AI tools, video, and text."
Telematics, Driving & Insurance
Building a Successful Telematics Program: Keys to Implementation, Benefits, and Vendor Selection : Risk & Insurance
As telematics technology continues to evolve, fleet managers face the challenge of implementing effective programs that enhance safety, reduce costs, and engage drivers. Creating a successful telematics strategy requires more than just installing devices—it demands a thoughtful approach to safety culture, technology selection, and data utilization.
What Are the Basic Elements of Building a Successful Telematics Program?
Implementing a successful telematics program requires several foundational elements that work together to create meaningful results. According to professionals at The Hartford, the approach should be comprehensive and people-focused.
“Building a successful telematics program involves several key components centered around using data safely and transparently. It’s essential to view telematics as a people effort powered by technology, not just a technology effort,” said Ashley Valour, Auto Product Director for Middle and Large Business at The Hartford.
Announcements
Carrier Management Hosts "Demo Day" for Homeowner Insurers
Carrier Management is hosting the second event in a series of free "Demo Days", designed to allow home insurers to experience rapid fire demos of cutting-edge risk tools. The latest online event offers insurance professionals risk assessment, prevention and intelligence tools specifically for the modern challenges of insuring homes.
Homeowners Data + AI Demo Day will be held on Wednesday, June 18th.
Beginning at 1 p.m. ET, homeowners' experts will present and demo their products to attendees. Information shared during the event will be tailored to underwriters, product managers, innovation teams, and execs at insurers, MGAs, and reinsurers focused on homeowners' coverage. Visit the event's website to register for this free event. Each sponsored presentation, demo or case study will run between 15 and 20 minutes. The event focuses on AI and data-driven solutions which help home insurers improve underwriting, pricing, and retention.
The first demo day earlier this year was Wildfire Risk Intelligence Demo Day. This event featured wildfire mitigation tech and attracted 255 registrants from 197+ companies.
Interested in applying for a demonstration or speaking slot at Homeowners Data + AI Demo Day ? The final deadline for those wishing to demo services is noon Pacific on Friday, June 12, 2025. Email: advertise@carriermanagement.com.
Podcast Sponsor
Audio Version - 'Connected: The Podcast' --- Sponsored by Pulse Podcasts
Co-curated by Alan Demers and Stephen Applebaum, The Connected Podcast is a condensed audio version of the day's ‘Connected' newsletter, a daily scan of all the happenings in the world of Insurance & InsurTech News.
Pulse Podcasts: Introduce a new way for your audience to hear your voice! We are a podcast creation service that helps businesses turn their written content, like blog posts and news articles, into beautiful podcasts. Our platform writes the script, records the voices, and mixes the audio to create engaging content for your audience. It's affordable and has super-fast turnaround!
LISTEN AND SUBSCRIBE BELOW